Ryder Capital Limited (ASX:RYD) is paying its fully franked dividends in cash because its Dividend Reinvestment Plan (DRP) has been suspended since July 2025. The listed investment company moved to quarterly dividends of 3 cents per share from the December 2025 quarter, and its latest dividend notice confirms the DRP was not applicable to that dividend.

Latest developments

Ryder reported its FY26 results in August. Total comprehensive income after tax rose 45.79% to a record $31.80 million, up from $21.81 million. Pre-tax Net Tangible Assets (NTA) per share increased from $1.6272 to $1.9805 over the year, after paying 11.5 cents of fully franked dividends, a pre-tax NTA return of 33.53%. Gross portfolio performance was 37.59% for the year, compared with 8.11% for the S&P/ASX Small Ordinaries Accumulation Index.

Profit after tax in the income statement was much smaller, at approximately $0.43 million, because most of the gains on Ryder's investments were recorded in other comprehensive income. The company also reported a total Shareholder return, including dividends, of 41.92% for FY26.

The company has called its annual general meeting, to be held in Sydney.

Key numbers

Ryder paid three quarterly dividends of 3 cents per share for the December 2025, March 2026 and June 2026 quarters. Together with the 5.5 cent final dividend for FY25, this brought dividends paid during FY26 to 11.5 cents per share.

All three quarterly dividends were fully franked at the 30% company tax rate, and the value of franking credits depends on each investor's tax position. The latest dividend, for the June 2026 quarter, was paid in cash as the DRP did not apply.

About the company

Ryder Capital is an ASX-listed investment company that has been listed since September 2015. It runs a concentrated portfolio of listed companies and measures itself against a hurdle of the RBA cash rate plus 4.25% per annum. The company names the S&P/ASX Small Ordinaries Accumulation index as its most comparable market index.

Peter Constable is Chairman and Chief Investment Officer. Recent monthly updates have named core holdings including Count, BCI Minerals, Chrysos Corp and Vitrafy Life Sciences. Like other listed investment companies, Ryder reports its NTA backing to the ASX each month.

How the DRP works

Ryder previously operated a DRP, but in July 2025 the directors resolved to suspend it with immediate effect until further notice, using a power in the DRP rules. While it is suspended, participants receive their dividends in cash. The Appendix 3A.1 for the June 2026 quarterly dividend states that the company has a DRP but that it is not applicable to that dividend.

When a DRP operates, shareholders can take new or existing shares instead of cash, usually priced from a volume-weighted average price, sometimes at a discount. For a listed investment company, whether shares are issued above or below NTA affects existing holders, which is one reason boards may pause a plan. Any reinstatement of the DRP would be announced to the ASX.

Why it matters for income investors

Ryder's quarterly policy provides more frequent dividend payments. The board has said a minimum fully Franked Dividend of 3 cents per quarter, or 12 cents annualised, applies for FY27, subject to ongoing performance, with the next dividend to be declared at the end of the September quarter.

Without a DRP, shareholders who want to reinvest dividends would need to buy shares on market, which usually involves brokerage. At the same time, the suspension means no new shares are issued under the plan, so the cash dividends do not dilute existing holders.

The indicated 12 cent annualised rate depends on the dividends actually being declared. Full franking adds value for investors who can use the credits, although how much depends on each investor's tax position.

What comes next

The September quarter dividend is the next scheduled milestone, followed by the annual general meeting. In its FY26 results, Ryder described the outlook for Equity markets as uncertain, citing a re-emergence of inflation, geopolitical uncertainty and central banks leaning towards tighter monetary policy, while saying a tougher market can create more Mispricing for selective investors. The monthly NTA updates show how the value of the underlying portfolio changes over time.

Risks and context

A listed investment company's dividends depend on realised gains, profit reserves and franking credits. Ryder's statutory profit after tax was small in FY26 even though comprehensive income was strong, and dividends paid during the year exceeded statutory profit after tax. Returns also depend on a concentrated portfolio, so a few holdings can move NTA significantly.

If the DRP were to resume, reinvested dividends would still be assessable income, and each DRP parcel would generally establish a new cost base for Capital Gains Tax purposes.

Conclusion

Ryder Capital (ASX:RYD) has introduced a 3 cent quarterly fully franked dividend, but its DRP remains suspended, so dividends are paid in cash. The company reported strong FY26 NTA growth, while portfolio concentration and market conditions remain key considerations.

Key Insights

Ryder Capital (ASX:RYD) reported a 33.53% pre-tax NTA return and record total comprehensive income in FY26, although statutory profit after tax was small because most investment gains were recorded in other comprehensive income. The company has moved to quarterly fully franked dividends of 3 cents per share and has indicated a minimum of 12 cents annualised for FY27, subject to ongoing performance.

The DRP has been suspended since July 2025, so dividends are paid in cash and no new shares are issued under the plan. Any reinstatement would be announced to the ASX.